Above is the daily chart of Hang Seng China Enterprise Index (HSCEI). This index includes all the shares of the China-corporatred companies lised on the Hong Kong Exchange, which are called H-shares.
Basically, analyzing this index could give us hints on the whole Hong Kong market as well, due to the large impact of the China company stocks on HSI.
From the chart, we could see that last week HSCEI dropped below the green up-trend channel. Luckily, two days later it appeared to be a false breakdown as the index bounced back into the channel.
In fact, it is still sliding along the red down-trend channel. After the little bounce, it is rising towards the upper line of the red channel.
MACD just crosses its EMA from below. This is of course a bullish cross signaling a stronger buy-momentum among investors.
We could expect the index to surge a little more and reach the upper red line, which is at around 12,750. Then we have to see whether it could break out or not.
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